If South Asia, Africa, East Asia, and Latin America increased their share of world exports by 1 per cent each, the resulting gains in income could lift 128 million people out of poverty, says a report by development agency Oxfam. Barbara Stocking, director, Oxfam, was in India recently to promote its 'Make Trade Fair' campaign. She explained to Vikas Singh and Rahul Shivshankar why it is vital that developing countries continue to seek greater market access:
Why has an agency better known for humanitarian work taken up the issue of fair trade?
Oxfam has a long history of campaigning and advocacy. Remember, it was set up during World War II to ensure that ordinary people did not suffer from famine in a war situation. We're also a development agency. Almost half our funding goes into tackling development issues in 80 poor countries. The reason for this trade campaign is that you can't just work on the ground, you also have to change policy at the national and international level, to really make a difference to the lives of poor people.
Aren't you worried that your report may end up encouraging anti-trade campaigners?
Let me make it clear, we believe trade can help poor people. Unfair trading rules may be hindering that right now, but that doesn't mean there's anything wrong with trade. Equally, globalisation is a reality. There may be some people who talk about opting out, but that's unrealistic. You really have to see how to make the system work better.It would be nice if everything was open and fair, but it's not like that in the real world. There are imbalances in all sorts of power relations and rules and regulations, and we have to try and switch those a bit.
What kind of reforms would you like to see at the World Trade Organisation?
We are really concerned that the processes at the WTO become much more transparent. Developing countries are working on capacity-building, but we are not sure they understand the implications of everything they are signing up for. We will work right through the next round of negotiations to ensure that it lives up to its billing of being a 'development round'. For example, we will be pushing for scrapping - or at least reduction - of agricultural subsidies in the north, and the issue of compulsory licensing in countries where people can't produce their own generic drugs.Activists favour labour standards; developing countries see them as a trade barrier.
Where does Oxfam stand?
We are pressing companies to do the right thing. A number of big companies say they don't allow poor working conditions or sexual harassment at their own workplaces, but can't check what's happening down the supply chain. We tell them that if corporates press down very hard on the prices they pay suppliers, the local factory owners in turn will squeeze their employees, making it worse for the workers. So, it's really up to corporates to pay a fair price for what they are getting. It's in their own interest to do so. Because internationally, it's not considered very respectable to be associated with such practices. Above all else, consumer pressure works. More and more consumers across the world don't want to be associated with firms that use sweatshops, and we're going to keep adding to that pressure.
Aren't you preaching to the converted in India about fair trade? What is Oxfam doing in the United States, where steel import curbs have been imposed?
I agree we've really got to get some movement in the US and the European Union, and we need to work on them to change their position. But we can only get change if, around the world, a lot of people show that they are really concerned about the way trade rules work. We've got to get people mobilised, which is why we've put the campaign on the Web. We have some confidence that we can actually achieve change, because we saw it in the case of the campaign to reduce debt for developing countries. We saw mass mobilisation, and governments recognised that their people didn't like what was going on. Of course, it doesn't happen overnight. We have to keep pushing.This particular campaign is aimed for the next three years, and we'll be focusing on specific issues like commodity prices and labour rights, particularly female labour rights. But that doesn't mean we haven't been campaigning on such issues before. For example, our campaign on the cost of drugs was obviously linked up to the patents issue, and came well before the free trade campaign. You're urging governments to embrace free trade.
But how about also telling them to simultaneously create social safety nets and improve infrastructure?
Certainly, trade on its own will not get rid of poverty completely. You have to work on education and basic infrastructure like electricity, water and roads. One of the problems I've been hearing about during my visit here is the high amount of taxation at state borders. If you're trying to encourage producers, then you could at least open your own markets a little more.One of my reasons for coming here was to talk with some ministers. I had a very good dialogue with your commerce minister, Murasoli Maran, and health minister C P Thakur. From my perspective, it was very helpful to talk about the WTO processes as the Indian government saw them. We didn't have deep conversations about internal Indian policies, because I don't know enough, and it would be very arrogant of me to come in for a few days and get into this area. But it could be something we could take up with our staff in India, and they can discuss some of the areas we might like to focus on.
What's Oxfam's reaction to Gujarat?
Oxfam stands for all people being equal and having basic human, economic and social rights. It's dreadfully sad to see a country that has historically had a good experience over thousands of years, of different communities and religions living together, starting to come apart. Did you raise the issue with the Indian government?No, I don't feel I know enough details. We are doing relief work in the refugee camps in Gujarat. But we are not going to get into who is right or wrong. What we are looking at is how ordinary people are affected. As I understand it, the UK government is very concerned about the situation. But we are not going to get into the middle of a debate between two governments. That is really not our business. We will do humanitarian work on the ground in Gujarat, and we will look at long-term peace-building there
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